Corner Lot Motel and
For Sale
$700,000
600 S 17th Street McAllen, McAllen, TX 78501
Substantial corner property combining motel and office space with adaptable interior and multi-use redevelopment flexibility.
Property Size8,224 SF
Price / SF$85.12
Days on Market53
Property Features for 600 S 17th Street McAllen
General Information
Standard status
Active
Size
8,224 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$6,716
Building Details
Building Size
8,224 SF
Year Built
1975
Listing Agency:
Texas Star Realty, LLC
(956) 478-9454
Listed By:
Jesus Salazar
Source:
Primeluxuryrealestate
Added: Jul 2
Changed: Aug 23
Last Checked: Aug 23 at 5:50AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Texas Star Realty, LLC
Investment Insights
Based on property information with market context.
This corner-piece property combines motel and office building history with an adaptable interior totaling 8,224 sq. ft. The configuration supports flexible redevelopment planning, whether the end use is retail, office, medical, or hospitality.
Situated at the prime corner of 17th & Fresno in McAllen, Texas, the site’s prominent corner positioning is suited for concepts that benefit from visibility and street-level presence.
The offering presents a scaled platform within the existing motel and office framework, positioned for buyers and operators looking to pursue multi-stream income potential through one or more compatible uses.
Situated at the prime corner of 17th & Fresno in McAllen, Texas, the site’s prominent corner positioning is suited for concepts that benefit from visibility and street-level presence.
The offering presents a scaled platform within the existing motel and office framework, positioned for buyers and operators looking to pursue multi-stream income potential through one or more compatible uses.
Key Highlights
- Corner lot at 17th & Fresno with multi‑use redevelopment potential
- 8,224 SF interior space with adaptable layout for multiple business uses
- Property combines former motel and office complex characteristics
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$56,252
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.04%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,125,040
$1.1M
Cap Rate 7%
$803,600
$803.6K
Cap Rate 9%
$625,022
$625.0K
Market Conditions
NOI Build-Up for 8,224 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$148.0K $18.00/SF
− Vacancy
−$29.6K −$3.60/SF
EGI
$118.4K $14.40/SF
− OpEx
−$62.2K −$7.56/SF
NOI
$56.3K $6.84/SF
Area
McAllen, TX
Vacancy
20.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,125,040
Cap Rate 7%
$803,600
Cap Rate 9%
$625,022
Alternative Uses
Best Use
Office B
$1.57M
$1.38M – $1.83M
NOI $110,099 @ 7.0% cap · market cap 15.73%
Second Best
Hotel Hospitality
$803.6K
$703.2K – $937.5K
NOI $56,252 @ 7.0% cap · market cap 8.04%
Theoretical Best
Office A
$2.23M
$1.95M – $2.61M
NOI $156,322 @ 7.0% cap · market cap 22.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,582
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 78501, TX
60,817
Population
24,807
Households
2.5
Avg Household Size
37
Median Age
27%
College-Educated
77%
High-School Grad
15.5 sq mi
ZIP Area
3,924
Density / Sq Mi
$49,451
Median Household Income
$29,092
Median Earnings
$943
Median Rent
$149,000
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Comfort Suites At Plaza Mall — 800 W Expy 83, McAllen, TX 78501
- Motel 6 Mcallen, TX — 700 W Expy 83, McAllen, TX 78501
- Super City Event Center — 1522 w expy 83, mcallen, tx 78503
- Super 8 by Wyndham McAllen/Downtown/La Plaza Mall — 1505 S 9th St, McAllen, TX 78501
- Days Inn by Wyndham McAllen — 1421 S 10th St, McAllen, TX 78501
Frequently Asked Questions
What type of property is this?
Motel - Substantial corner property combining motel and office space with adaptable interior and multi-use redevelopment flexibility.
Where is this motel located?
The property is located at 600 S 17th Street McAllen McAllen, TX.
What is the asking price?
The asking price for this property is $700,000.
What are key features of this property?
This property features: Corner lot at 17th & Fresno with multi‑use redevelopment potential; 8,224 SF interior space with adaptable layout for multiple business uses; Property combines former motel and office complex characteristics
